Can I develop iOS5 apps with Xcode 3.x?

I have just gone through the painful process of updating my macbook to Snow Leopard only to find Xcode 4 is only free for Lion users.

I know I can get it for free if I join the developer program however I want to practice developing on iOS before forking out the $99.

So I stick with Xcode 3 for now?

I think xcode 4 is $5 or so for non-lion users. AFAIK, iOS5 requires xcode 4.2. All that said, if you are at the just practicing stage you probably would be OK without worrying about targeting iOS5. Now, you probably still want the other improvements that went into xcode 4 like the vastly superior interface builder . . .

No, as wwb said. You need xcode 4.2 to target iOS5. But no need just yet. But I would at least get 4.x. It looks a lot better, but is a lot worse than xcode 3.x. It is very unstable. But the interface builder is not integrated, which makes that a lot easier

You need to download and install the latest xcode version with iOS 5. You can refer the link below for more reference.
http://stackoverflow.com/questions/6262877/xcode-3-and-sdk-ios-5-is-possible